Analyst raves over Penn Gaming-Barstool, sees 46% upside: 'Don't Bet Against Portnoy'

David Portnoy, founder of Barstool Sports.
Adam Jeffery | CNBC

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Penn National Gaming's investment in David Portnoy's Barstool Sports is nothing short of brilliant, pairing one of the largest online gambling platforms with a devout fanbase and brand, according to brokerage Craig-Hallum.

Analyst Ryan Sigdahl praised Penn's decision to take a stake in Portnoy's  site as the partnership "unlocks significant value for both parties and PENN shareholders."

The firm initiated equity coverage on Penn with a "Buy" rating and set a price target of $75, 46% above where shares closed on Monday at $51.10.

"Dave Portnoy Is A Marketing Genius," stated the note. "If millions of people follow his pizza reviews and stock trading, how many do you think will follow his sports betting recommendations?"